A pair of House Republican lawmakers has introduced a bill, entitled the Provide for the Common Defense Act (H.R. 3639), that would eliminate sequestration for the Defense Department and the “revised security category” in fiscal years 2014 and 2015. The bill was introduced by Reps. Jim Bridenstine (OK-1) and Doug Lamborn (CO-5).
The bill requires federal employees to contribute greater proportions of their salary to their pensions, curtails Medicare payments and agricultural subsidies, and shifts to a less generous formula for inflation known as the chained Consumer Price Index (chained-CPI), among other cost-saving provisions.
In particular, the bill would eliminate the Federal Employee Retirement System (FERS) Annuity Supplement for new employees and increase federal employee’s contributions toward pensions from 0.8 percent to 2.0 percent of pay over three years. These provisions offer $20 billion in budget savings, and were pulled directly from President Obama’s 2014 budget submission.